Friday, 13 September 2013

Expansion Past and Present

RSM Expansion

One of RSM's biggest selling points is our 90% re-investment rate. It allows us to continually upgrade hardware and ideally not have to dilute share holder value by offering bonds or additional shares. With that in mind late July and early August of 2012 RSM ordered hardware from BFL. To maximize our potential earnings we traded in our FPGAs and other mining hardware in order to get a miner that was suppose to be delivered in "two weeks (c)".

The delays at BFL have been legendary. And by the time we were looking to get our first piece of hardware the Bitcoin network had grown significantly. If we were to stay competitive we needed an influx of capital to increase our hash rate at a rate that would keep pace with the networks exponential growth and more significantly, make up for the hashing potential that we did not have while waiting for BFL hardware.

So RSM did what companies aught to do when they need more capital: We asked our shareholders for some. Together our shareholders were able to come up with a sizable amount of capital (See exact numbers here). Giving RSM enough capital to order two KNC Jupiter miners (400GH/s apiece) bringing our total mining power from 180GH/s to 980GH/s when all delivered and increasing our per share hashing power over two-fold to ~7MH/s (from 2.8MH/s).

Our shareholders who contributed received share in relation to the amount the contributed at the price of 0.002079128[BTC] per share. These shares are scheduled to be released after the second KNC miner comes on-line (est. October). Until then these shares are being held by RSM. (Edit: We've clarified release times. Read about it here. Summary, shares will be released after the related miner comes online)

As of now, we are not looking for additional capital. We believe that this injection of capital and the additional hashing power it brings will be enough to grow as the network grows on the basis of our 90% re-investment plan.

Moving forward, Management is currently considering selling our BFL SCs and purchasing two Hash Fast Baby Jet[] which would bring us to 1.6TH/s (all at 28nm hardware) by late November. And/Or a TerraMiner IV[] which could bring us to 3.2TH/s or higher by January.

Also there has been some discussion in management about share buyback. It should be clarified that share buyback would not begin until we are past 1TH/s. The shares bought back under this plan would lie dormant until a time where we would need to issue shares again. But the shares bought would be owned by RSM and would effectively be taken off the market.

So there are our current expansion plans. As always if you have questions or comments leave them below or on our bitcointalk thread.

Financial Disclaimer

The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", "subsequent", or "continue" and similar expressions identify forward-looking statements.

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